Employ American Workers Act

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The Employ American Workers Act (EAWA) was a component of the American Recovery and Reinvestment Act of 2009 (ARRA, commonly called the "stimulus bill") passed by the 111th United States Congress and signed into law by Barack Obama, then President of the United States, on February 17, 2009. [1] [2] [3] [4] The Act had a validity period of two years and was set to expire on February 17, 2011. [1] It was not renewed, hence it sunset on February 17, 2011 and is no longer applicable. [5]

Contents

Provisions

EAWA affected only those companies that had received funds from one of these: [1] [3]

EAWA imposed the requirement that all such companies would be classified as H-1B-dependent employers for their Labor Condition Applications, with the following caveats:

Form I-129 was modified by the USCIS to include an additional sheet asking questions about receipt of TARP and Section 13 funding and repayment of the funds. [2]

The United States Department of the Treasury clarified that, if the Treasury merely holds warrants in an entity (such as through the Capital Purchase Program) that does not make the entity subject to EAWA. [7]

The concept of H-1B-dependent workers, originally introduced in the American Competitiveness and Workforce Improvement Act of 1998, was intended to apply to companies for which a substantial portion of the workforce used the H-1B. Its extension to companies that may not otherwise have a large H-1B workforce was due to concerns that government funds given to banks be used to tackle problems of unemployment and depression in the United States, rather than fund the livelihoods of foreigners. [8]

Reception

EAWA received sharp criticism from immigration lawyers and economists who alleged that the law was an act of economically irresponsible protectionism, and that it starved companies of talented workers precisely when they needed those workers the most. [5] [8] [9] [10] An article in The Wall Street Journal noted that many students who had received confirmed job offers from financial institutions found their employers reneging on the offers due to the new restrictions. [9]

An article in EWeek noted that these restrictions on TARP and Section 13 recipients, most of them banks and other financial institutions, would likely make it easier for workers at technology companies to get H-1B visas, given the limited number of visas allotted every year and the fierce competition for those slots. [11]

Related Research Articles

The H-1B is a visa in the United States under the Immigration and Nationality Act, section 101(a)(15)(H), that allows U.S. employers to employ foreign workers in specialty occupations. A specialty occupation requires the application of specialized knowledge and a bachelor's degree or the equivalent of work experience. The duration of stay is three years, extendable to six years, after which the visa holder can reapply. Laws limit the number of H-1B visas that are issued each year. There exist congressionally mandated caps limiting the number of H-1B visas that can be issued each fiscal year, which is 65,000 visas, and an additional 20,000 set aside for those graduating with master’s degrees or higher from a U.S. college or university. An employer must sponsor individuals for the visa. USCIS estimates there are 583,420 foreign nationals on H-1B visas as of September 30, 2019. The number of issued H-1B visas have quadrupled since the first year these visas were issued in 1991. There were 206,002 initial and continuing H-1B visas issued in 2022.

An L-1 visa is a visa document used to enter the United States for the purpose of work in L-1 status. It is a non-immigrant visa, and is valid for a relatively short amount of time, from three months to five years, based on a reciprocity schedule. With extensions, the maximum stay is seven years.

TN status is a special non-immigrant classification of foreign nationals in the United States, which offers expedited work authorization to a citizen of Canada or a national of Mexico. It was created as a result of provisions of the North American Free Trade Agreement that mandated simplified entry and employment permission for certain professionals from each of the three NAFTA member states in the other member states. The provisions of NAFTA relevant to TN status were then carried over almost verbatim to the United States–Mexico–Canada Agreement that replaced NAFTA in 2020.

The E-3 visa is a United States visa for which only citizens of Australia are eligible. It was created by an Act of the United States Congress as a result of the Australia–United States Free Trade Agreement (AUSFTA), although it is not formally a part of the AUSFTA. The legislation creating the E-3 visa was signed into law by U.S. President George W. Bush on May 11, 2005. It is widely believed to have grown out of the negotiation of a trade deal between the US and Australia.

In the United States, Optional Practical Training (OPT) is a period during which undergraduate and graduate students with F-1 status who have completed or have been pursuing their degrees for one academic year are permitted by the United States Citizenship and Immigration Services (USCIS) to work for one year on a student visa towards getting practical training to complement their education. Foreign students currently enrolled at a U.S. university can receive full-time or part-time work authorization through Curricular Practical Training. In 2022, there were 171,635 OPT employment authorizations. In 2021, there were 115,651 new non-STEM OPT authorizations, a 105% increase from a decade ago.

U.S. Citizenship and Immigration Services (USCIS) is an agency of the United States Department of Homeland Security (DHS) that administers the country's naturalization and immigration system. It is a successor to the Immigration and Naturalization Service (INS), which was dissolved by the Homeland Security Act of 2002 and replaced by three components within the DHS: USCIS, Immigration and Customs Enforcement (ICE), and Customs and Border Protection (CBP).

An H-2A visa allows a foreign national worker into the United States for temporary agricultural work. There are several requirements of the employer in regard to this visa. The H-2A temporary agricultural program establishes a means for agricultural employers who anticipate a shortage of domestic workers to bring non-immigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary or seasonal nature. In 2015 there were approximately 140,000 total temporary agricultural workers under this visa program. Terms of work can be as short as a month or two or as long as 10 months in most cases, although there are some special procedures that allow workers to stay longer than 10 months. All of these workers are covered by U.S. wage laws, workers' compensation and other standards; additionally, temporary workers and their employers are subject to the employer and/or individual mandates under the Affordable Care Act. Because of concern that guest workers might be unfairly exploited the U.S. Department of Labor Wage and Hour Division is especially vigilant in auditing and inspecting H-2A employers. H-2A employers are the only group of employers who are required to pay inbound and outbound transportation, free housing, and provide meals for their workers. H-2A agricultural employers are among the most heavily regulated and monitored employers in the United States. Unlike other guest worker programs, there is no cap on the number of H-2A visas allocated each year.

<span class="mw-page-title-main">Visa policy of the United States</span> Policy on permits required to enter the United States and its unincorporated territories

Visitors to the United States must obtain a visa from one of the U.S. diplomatic missions unless they are citizens of one of the visa-exempt or Visa Waiver Program countries.

An H-4 visa is a United States visa issued to dependent family members of H-1B, H-1B1, H-2A, H-2B, and H-3 visa holders to allow them to travel to the United States to accompany or reunite with the principal visa holder. A dependent family member is a spouse or unmarried child under the age of 21. If a dependent of an H-1B, H-1B1, H-2A, H-2B, or H-3 worker is already in the United States, they can apply for H-4 immigration status by filing Form I-539 for change of status with United States Citizenship and Immigration Services (USCIS).

The EB-1 visa is a preference category for United States employment-based permanent residency. It is intended for "priority workers". Those are foreign nationals who either have "extraordinary abilities", or are "outstanding professors or researchers", and also includes "some executives and managers of foreign companies who are transferred to the US". It allows them to remain permanently in the US.

<span class="mw-page-title-main">Labor Condition Application</span>

The Labor Condition Application (LCA) is an application filed by prospective employers on behalf of workers applying for work authorization for the non-immigrant statuses H-1B, H-1B1 and E-3. The application is submitted to and needs to be approved by the United States Department of Labor Employment and Training Administration (DOLETA)'s Office of Foreign Labor Certification (OFLC). The form used to submit the application is ETA Form 9035.

The American Competitiveness in the 21st Century Act (AC21) was an act passed by the government of the United States in October 2000, pertaining to immigration to the United States. It was a complement to the American Competitiveness and Workforce Improvement Act that had been passed in 1998. The focus of AC21 was to change rules related to portability and caps for the H-1B visa to increase the effective number of visas available and make it easier for workers on those visas to switch jobs. Although the language of the Act references the Immigration and Naturalization Service (INS), the INS would soon be restructured and the functions of the INS referenced in AC21 would be handled by United States Citizenship and Immigration Services.

The American Competitiveness and Workforce Improvement Act (ACWIA) was an act passed by the government of the United States on October 21, 1998, pertaining to high-skilled immigration to the United States, particularly immigration through the H-1B visa, and helping improving the capabilities of the domestic workforce in the United States to reduce the need for foreign labor.

The H-1B Visa Reform Act of 2004 was a part of Title IV of the Consolidated Appropriations Act, 2005 in the United States that focused on changes to regulations governing H-1B visas. It was a successor to previous legislative changes affecting the H-1B, namely: the Immigration Act of 1990, American Competitiveness and Workforce Improvement Act (ACWIA) of 1998, and the American Competitiveness in the 21st Century Act (AC21) of 2000. The Consolidated Appropriations Act was signed by George W. Bush, then President of the United States, in early December 2004.

Form I-129, Petition for a Nonimmigrant Worker is a form submitted to the United States Citizenship and Immigration Services used by employers or prospective employers to obtain a worker on a nonimmigrant visa status. Form I-129 is used to either file for a new status or a change of status, such as new, continuing or changed employer or title; or an amendment to the original application. Approval of the form makes the worker eligible to start or continue working at the job if already in the United States. If the worker is not already in the United States, an approved Form I-129 may be used to submit a visa application associated with that status. The form is 36 pages long and the instructions for the form are 29 pages long. It is one of the many USCIS immigration forms.

Premium Processing Service is an optional premium service offered by the United States Citizenship and Immigration Services to employers filing Form I-129 or Form I-140. To avail of the service, the employer needs to file Form I-907 and include a fee that is $1,500 for the H-2B and R classifications and $2,500 for all others.

The term H-1B-dependent employer is used by the United States Department of Labor to describe an employer who meets a particular threshold in terms of the fraction of the workforce comprising workers in H-1B status. An employer classified as H-1B-dependent needs to include additional attestations in the Labor Condition Application used for the petition of any H-1B beneficiary being offered an annual compensation of less than $60,000 and without a master's degree. The notion was introduced by the American Competitiveness and Workforce Improvement Act (ACWIA) passed in 1998 and operationalized through the United States Department of Labor's Interim Final H-1B Rule of December 20, 2000. The regulation is found in 20 CFR 655.736 in the Code of Federal Regulations.

In the United States, the most common visa used for short-term trips is the B visa. This is a combination of the B-1 visa and the B-2 visa. People on B visas are generally not allowed to engage in productive work or study activities. However, in some cases, B visas can be issued that allow people to engage in some types of productive work and learning activity, in lieu of another visa. The three visa categories, for which a B visa could be issued instead, are the H-1B visa, H-3 visa, and J-1 visa. The U.S. Department of State recommends that consular officers clearly annotate such B visas to make the scope of the visa clear to the applicant and the U.S. Customs and Border Protection officer at the port of entry.

The H-1A visa was a visa that was previously available to foreign nationals seeking temporary employment in the United States. These visas were made available to foreign nurses coming into the United States to perform services as a registered nurse in areas with a shortage of health professionals as determined by the Department of Labor. The creation of this visa was prompted by a nursing shortage.

Tenrec v. USCIS, colloquially known as the H-1B Lottery Lawsuit, was a class action lawsuit brought against United States Citizenship and Immigration Services, challenging the lottery process used to decide which cap-subject H-1B Form I-129 petitions to adjudicate in case more petitions were received than the cap for the fiscal year. The plaintiffs were two pairs of H-1B petitioner (employer) and beneficiary. The case was decided against the plaintiffs, and an appeal was withdrawn after both plaintiffs withdrew.

References

  1. 1 2 3 4 "Employ American Workers Act (EAWA) and H-1B Petitions". United States Citizenship and Immigration Services . Retrieved March 29, 2015.
  2. 1 2 "USCIS Announces New Requirements for Hiring H-1B Foreign Workers" (PDF). March 20, 2009. Retrieved March 29, 2015.
  3. 1 2 3 4 "Fact Sheet #62Z" (PDF). Wage and Hour Division, United States Department of Labor . Retrieved March 29, 2015.
  4. "EAWA FAQ" (PDF). Federal Reserve System, in consultation with United States Citizenship and Immigration Services . Retrieved March 29, 2015.
  5. 1 2 Mehta, Cyrus D. (February 18, 2011). "EAWA HAS SUNSET". The Insightful Immigration Blog. Retrieved March 29, 2015.
  6. "9 FAM 41.53 EXHIBIT I EMPLOY AMERICAN WORKERS ACT (EAWA) RESTRICTIONS ON H-1B PETITIONS" (PDF). United States Department of State. Archived from the original (PDF) on November 30, 2009. Retrieved March 29, 2015.
  7. "FAQ on Capital Purchase Program and the Employ American Workers Act" (PDF). United States Department of the Treasury . Retrieved March 29, 2015.
  8. 1 2 Paparelli, Angelo A.; Chiappari, Ted J. "The Employ American Workers Act: Protectionist Turducken, Immigration Style" (PDF). Seyfarth Shaw LLP. Retrieved March 29, 2015.
  9. 1 2 Slaughter, Matthew J. (June 20, 2012). "How Skilled Immigrants Create Jobs. The Employ American Workers Act has achieved three things: Lost ideas. Lost jobs. Lost taxes". The Wall Street Journal . Retrieved March 29, 2015.
  10. Paparelli, Angelo A. (February 26, 2009). "Banking on Zombie Immigration". Immigration Daily. Retrieved March 29, 2015.
  11. Mark, Roy (March 23, 2009). "USCIS Issues 2009 H-1B Visa Plans". EWeek . Retrieved March 29, 2015.